2010 uspap changes & common uspap/ua interfaces federal agency update sponsored by the appraisal...
TRANSCRIPT
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2010 USPAP 2010 USPAP ChangesChanges
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Common USPAP/UA Common USPAP/UA InterfacesInterfaces
Federal Agency UpdateFederal Agency UpdateSponsored by the Appraisal Institute and the Sponsored by the Appraisal Institute and the
International Right of Way Assoc.International Right of Way Assoc.1/26/10 Las Vegas1/26/10 Las Vegas
Presenter: Michael C. McCall, MAIPresenter: Michael C. McCall, MAI
[email protected]@VDOT.Virginia.gov
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New Definitions Purpose: Clarification
• Assignment: 1) an agreement between an appraiser and a client to provide a valuation service; 2) the valuation service that is provided as a consequence of such an assignment
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New Definitions (Cont.)
• Signature: personalized evidence indicating authentication of the work performed by the appraiser and the acceptance of the responsibility for content, analyses, and the conclusions in the report.
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New Definitions (Cont.)
• Jurisdictional Exception: an assignment condition established by applicable law or regulation which precludes an appraiser from complying with part of USPAP
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Edits to Ethics Rule
• Introductory Section: Reworded and the caveat for compliance by organizations involved in appraisal has shifted to the individual employed by said organizations.
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Ethics Rule Edits – Conduct
• Conduct: – New Bullet: must not perform an assignment
in a grossly negligent manner (Standards Rules already prohibit “careless and negligent manner”)
– New Bullet: must not perform an assignment with bias
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Ethics Rule Edits – Conduct (cont.)
• New Requirement: If known prior to accepting an assignment, and/or if discovered at any time during the assignment, an appraiser must disclose to the client, and in the subsequent report certification:– Any current or perspective interest in the subject
property or parties involved; and– Any services regarding the subject property
performed by the appraiser within the three year period immediately preceding acceptance of the assignment, as an appraiser or in any other capacity.
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Ethics Rule Edits – Management
– An appraiser must disclose that he or she paid a fee or commission, or gave a thing of value in connection with the procurement of an assignment.
• Must appear in certification and letter of transmittal.
• Not necessary to disclose amount
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Ethics Rule Edits – Management (cont.)
• Misleading advertising language clarified
• Signature:– An appraiser must fix, or authorize the use of,
his or her signature to certify recognition and acceptance of his or her USPAP responsibilities in an appraisal or review
– An appraiser may authorize the use of his or her signature only on an assignment-by-assignment basis.
– An appraiser must not affix the signature of another appraiser without his or her consent.
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Ethics Rule Edits (cont)
• Confidentiality Section – edited for clarity
• Record Keeping Section– Requirement for client access to restricted
appraisal files deleted
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Ethics Rule Edits – Record Keeping (cont.)
• An appraiser having custody of a workfile must allow other appraisers with workfile obligations related to an assignment appropriate access and retrieval for the purpose of:– State Regulatory Agencies– Compliance with due process of law– Professional peer review– Compliance with retrieval agreements
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Edits to Competency Rule• Edited and expanded for clarity. Now
includes:– Some discussion and description of
competency• Ability to define the problem• Knowledge and experience to complete
assignment• Recognition of, and compliance with, laws and
regulations
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Edits to Competency Rule (cont)
– Some expanded discussion of how competency may be acquired e.g.
• Personal study• Association with others that have knowledge and
experience in the subject matter• Retention of others that have knowledge and
experience in the subject matter
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Edits to Jurisdictional Exception Rule
• New language: If any applicable law or regulation precludes compliance with any part of USPAP, only that part of USPAP becomes void for that assignment.– Comment: When compliance with USPAP is
required by federal law or regulation, no part of USPAP can be voided by law or regulation of the state or local jurisdiction.
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Edits to Jurisdictional Exception Rule (cont)
• Descriptions of laws and regulations edited– Law includes constitutions, legislative and court-
made law, and administrative rules and ordinances. Regulations include rules or orders having legal force, issued by an administrative agency. Instructions from a client or attorney do not establish a jurisdictional exception.
– Non-Compensable?
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Edits to Jurisdictional Exception Rule (cont)4 NEW REQUIREMENTS
• In an assignment involving a jurisdictional exception, an appraiser must: – 1) Identify the law or regulation that precludes
compliance with USPAP
– 2) Comply with that law or regulation
– 3) Clearly and conspicuously disclose in the report the part of USPAP that is voided by that law
– 4) Cite in the report the law or regulation requiring this exception to USPAP compliance
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Edits to Standard 3Appraisal Review
• Standard 3 was reorganized and edited for clarification. No substantial changes to fundamental requirements.
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Common Uniform Act Issues
• Jurisdictional Exception
• Hypothetical Conditions
• Scope of Work
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Jurisdictional Exception
• Project Influence–Uniform Act requires appraiser to
ignore influence of project in the “before value”
–Question of Jurisdictional Exception• Addressed in USPAP language.
Discussion follows with Q&A examples
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Hypothetical Conditions
• Valuing the property as if the project is complete creates a hypothetical condition
• While ignoring project influence is not a jurisdictional exception, it is a hypothetical condition
• Discussion follows with Q&A examples
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Scope of Work
• FHWA requires agency to take the lead in scope of work decision.
• USPAP requires appraiser to take responsibility
• Conflict?– No, the decision is a mutually agreed upon
process. Discussion follows with Q&A examples.
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Hope this was useful